A Software Audit or License Review determines whether the use of the software by the right holder of the software is in line with the licenses acquired and their terms and conditions. These audits were once intended to protect the intellectual property or technology of the major Software vendors from unauthorized use. This is understandable but in recent years they have degenerated into a power tool of sales departments to pressure customers into making undesirable or unnecessary software purchases at sky-high payments, often retroactively. The financial impact on a company is often huge.
Audit, review or internal investigation, it is important not to distinguish between an audit and a software vendor review. An audit is more formal in nature, is announced through a letter of announcement and is sometimes conducted by Big Four auditors. Some cases even involve a team of lawyers and bailiffs.
Sometimes an audit is called a review. This seems more informal in nature and is usually conducted by the client of the review itself or by a reseller of the software. This is usually more collaborative with the client, but formally, however, this is always just an audit. This also applies to all requests for counts of licenses and/or usage that are not contractually agreed upon.
Notorious are raids by a bailiff and lawyer. In the Netherlands, the Business Software Alliance works this way. The BSA is an organization paid by software vendors to monitor compliance directly.
It is important not to start a Software Audit or License Review without a structured approach.
The basis for handling Software Audits / License Reviews is a well-structured process with the right knowledge, document templates (project plan, confidentiality agreement, Data Processing Agreement, etc.) and team members to optimize the outcome for you, the client, combined with an in-depth knowledge of the general terms and conditions of the major software companies. This approach puts an organization in control when handling software compliance audits.
ARC People has a team of experienced experts to support you when you receive a notice from a software company for a License Audit and minimize after-the-fact charges. We can also proactively identify your risks through a Software License Risk Assessment so you are ready before a vendor announces an audit. You will more than recoup these costs.